A task force established by Gov. Susana Martinez to review the impact of state regulations on small businesses has focused narrowly on environmental and construction rules, with an eye toward some major overhauls.

A "mid-point report" sent by the task force Feb. 18 to the governor's chief of staff, Keith Gardner, noted the group's review would focus on rules and regulations in the state Environment, Energy, Minerals and Natural Resources, and Game and Fish departments. The task force will "determine the best approach to rescind or revise the troublesome rules/regulations," according to the report.

The task force, which has met twice, noted that environment and construction are two areas "in which industries have been significantly and economically affected by rules and regulations." The task force is to make a full, formal report to Martinez by April 1.

So far, no one interviewed from the task force or asked to comment on the group's work has publicly produced anything concrete about how specific environmental and construction rules impact small businesses.

Some task force members, busy lobbying for their clients at the Legislature or running their own businesses, were only able to attend the first task force meeting.

Task force member Carol Wight, head of the New Mexico Restaurant Association, said the task force isn't likely to address two areas affecting the business decisions of her hundreds of members: the state fire code and alcohol licensing regulations.

Still, she thinks the focus on environmental and construction regulations is good. "Environmental regulations are costly for all businesses and all New Mexicans," she said. "We need to think through carefully making our laws more stringent than federal laws."

Carlo Lucero, president of Sparkle Maintenance Inc. and former chairman of the Hispano Chamber of Commerce, wouldn't comment on the task force work so far. But he said his objective in participating was to address tax and labor issues affecting businesses like his.

So far, the task force doesn't appear to be dealing with those matters.

"We just need to make New Mexico a more business-friendly place," Lucero said.

Both Raj Solomon, deputy secretary at the New Mexico Environment Department, and Scott Darnell, spokesman for Martinez, referred questions to task force chairman Jon Barela, secretary-designate of the Economic Development Department.

Barela did not respond to e-mails and messages left with his communications department in time for this story.

The task force is focusing on the revised pit rule for oil and gas waste, now 2 years old; a 5-year-old enforcement and compliance rule for oil and gas wells; and new building codes, among other things.

Among the task force's early recommendations, according to the report:

• Make all state rules and regulations "across the board" no more stringent than federal regulations. This would automatically affect the greenhouse-gas emissions rule approved by the former Environmental Improvement Board since there is no federal standard yet. Wight believes the task force is right on this: "If our regulations are higher, it makes New Mexico completely uncompetitive," she said.

• Remove the New Mexico cap-and-trade rule and step away from partnership with California in the Western Climate Initiative's regional cap-and-trade program. Instead, join Utah, Washington and Oregon as observers. Arizona pulled out of the WCI in February.

• Delay adopting new air-quality standards.

• Review the enforcement and compliance rule, which requires oil and gas producers to comply with Oil Conservation Division requirements. Before the rule was passed five years ago, compliance was voluntary.

• Combine and reduce the number of construction industry licenses required "without jeopardizing health or safety."

• Repeal, modify or replace a 2009 amendment to the Public Works Minimum Wage Act that requires contractors to pay the prevailing wage established through collective bargaining to all laborers, even if they are not part of a union.

At least two recommendations have already been addressed. The New Mexico Environment Department has agreed to set up a "small business committee" that will work on permitting and regulation problems with the Economic Development Department.

And Deputy Secretary Raj Solomon agreed to set up a six-member team to develop a fast-track environmental permitting process within the New Mexico Environment Department to address a backlog of applications.

The report notes "the task force does not wish to present a laundry list of problems to the Governor but develop solutions. The goal is to provide the Governor and/or agencies cover when repealing or revising a rule or regulation thus avoiding litigation if possible."

The pit rule, first approved in 2003 and amended in 2008 and 2009, requires oil and gas producers to contain the waste products from drilling in a lined pit or a closed loop system from which the waste is hauled to a licensed facility. The updated rule in 2008 came after more than a year of public hearings, analysis of well samples near drilling operations and a report by a task force of representatives from state agencies, environmental groups, and the oil and gas industry. Former Gov. Bill Richardson ordered the rule amended after oil prices fell and the industry asked for help.

The oil and gas industry has maintained the rule has chased out well drillers and is too expensive to meet, statements not borne out by the level of drilling and production that has occurred in the last year around the state.

Both Martinez and her Democratic opponent in the gubernatorial race, Diane Denish, opposed the cap-and-trade rule approved late last year by the state.

Minda McGonagle, state director of the National Federation of Independent Business, said small businesses are concerned about major regulations such as the greenhouse-gas emissions rule because they aren't sure how it might affect them down the food chain. "They're believing what they're being told, that this is going to impact utility companies and ultimately them," said McGonagle, who also lobbies for state subcontractors and a Phoenix energy company. "Businesses are already having a hard time getting credit, keeping people hired, growing their product. Then you throw in a big concept like greenhouse-gas emissions regulations into the mix and it frightens them more. Small business isn't sure where they are going to get hit."

Missing from the small business task force, apparently, are any of the 1,130 members of the New Mexico Green Chamber of Commerce, which touts the "triple bottom line" of balancing people, profits and the planet. Their members include restaurants, renewable energy companies, auto shops and others across the state.

Wight hopes the task force's work will, if nothing else, "at least look at the laws we're making now for their unintended consequences. Every new law we make has a cost and a consequence, and most of the consequences are unintended."

Contact Staci Matlock at 986-3055 or smatlock@sfnewmexican.com.